India’s record foreign exchange reserves likely to squeeze RBI's earnings

Kolkata/Mumbai: India’s record foreign exchange reserves may have saved the blushes for the government, but the central bank's earnings that help build a surplus and contribute to the country’s non-tax revenue may be dented.The returns for the Reserve Bank of India (RBI) are likely to be squeezed with investments in low yielding US dollar assets, and also due to payment of interest to banks in reverse repo.A stable rupee also squeezed the